Reference: 21_08 Fairfield Co. Has Collected the Following Information About Its Production

question 19

Essay

Reference: 21_08
Fairfield Co. has collected the following information about its production activities for the current year:
Actual costs and quantities:
Direct materials used 95,000 lbs. @ $6.30 per lb.
Units completed during the year, 50,000 units
Standard costs and quantities:
Price per lb. of direct material, $6.05
Two lbs. of direct material per unit
-Calculate the direct materials price and quantity variances and indicate whether each is favorable or unfavorable.

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Definitions:

Mislaid Property

Refers to personal property that is unintentionally left by its owner in a place where it is likely to be found and cared for, such as leaving a book in a cafe.

Abandoned Property

Property that has been discarded by its owner, who has no intention of reclaiming it.

Lost Property

Items that are unintentionally left by their owner at an unspecified location, where the owner retains the right to reclaim.

Inherited Property

Assets or estates received from someone who has passed away, typically through a will or through the laws of intestacy.